Efficiency Evaluation for Regional Energy and Environment Using Two-Stage DEA Model Considering Stochastic Factors

Abstract

Energy consumption has risen much more while the economy has expanded so quickly. As a result, significant environmental contamination is created, which causes public worry. Under this background, enhancing energy efficiency and lowering pollution is particularly crucial for the fulfillment of sustainable economic development. Efficiency evaluation for energy and environment is an effective measure to achieve both energy saving and emission reduction as well as sustainable social development. In this paper, energy and environmental efficiency consists of energy utilization efficiency and pollution treatment efficiency. An improved two-stage DEA model is proposed, which takes into account how stochastic and environmental factors affect decision-making units (DMUs). Finally, the author analyses the panel data of 15 cities in Southwest China from 2010 to 2018, which proves the feasibility and effectiveness of this study. The results show Southwest China’s poor energy and environmental efficiency as well as the stark differences among its cities. The scientific value revealed by this paper is as follows: (1) for the study of energy and environmental efficiency, this paper is more targeted at the differences between cities and (2) using an improved two-stage DEA model to consider the effects of stochastic factors on DMUs.